Retail Inventory Method. The records of Greene Company report the following data for the month of April.
Question:
Retail Inventory Method. The records of Greene Company report the following data for the month of April.
Sales .......................$204,000
Purchases (at cost) ................. $ 96,000
Sales returns ..................... 4,000
Purchases (at sales price) ............. 176,000
Additional markups ................ 20,000
Purchase returns (at cost) ............. 4,000
Markup cancellations ............... 3,000
Purchase returns (at sales price) ........... 6,000
Markdowns ................... 18,600
Beginning inventory (at cost) ........... 60,000
Markdown cancellations ........... 5,600
Beginning inventory (at sales price) ........... 93,000
Freight on purchases ................. 2,000
Instructions
Compute the ending inventory by the conventional retail inventory method.
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Computation of the Ending Inventory Cost Retail Beginning Inv...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
